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Job XYZ requires five hours of direct labour (which include three hours of machine work) being 4 hours at $0.65/hour, and 1 hour at
Job XYZ requires five hours of direct labour (which include three hours of machine work) being 4 hours at $0.65/hour, and 1 hour at $0.40/hour. Direct material cost is $12. Administration overheads are to be absorbed on the basis of 10% of factory cost, and selling and distribution overheads are to be absorbed of 20% of factory cost. The following types of rates for absorbing production overheads are available: Units of output: $2/unit Direct labour hour: $0.50/hour Machine hour: $0.625/hour Wages %: 100% Production cost % 33% of material cost Required: (a) Show the possible production charges for this job. (6 marks)
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